We analyze the impact of different types of international conventions that
require signatory countries to penalize domestic firms that are found to
have bribed foreign public officials. We analyze enforcement of penalties
under a convention styled after the OECD's 'Convention on Combating Bribery
of Foreign Public Officials in International Business Transactions', in which
signatory countries commit to prosecuting firms that have bribed public
officials of any foreign country. We compare the results with the case in
which the convention requires signatory countries to commit to prosecuting
firms that have bribed public officials of signatory countries only.
We argue that the second type of convention is more likely to ensure
enforcement of penalties on firms found to have bribed foreign public
officials.